ADVOKS GLOBAL · KENYA
The Capital Markets (Collective Investments Schemes) Regulations, 2023
101. Resolution of the dilutive effect
Edition: 2023-12-15 · In force
101. Resolution of the dilutive effect
(1)Where during a dealing period, a scheme experiences inflows or outflows as a result of sales or redemptions of participatory interests in excess of a predetermined level as set out in the formation documents, the fund manager shall be entitled to raise an anti-dilution levy, calculated on the basis of subregulation (2), on the investors buying or selling participatory interests in the scheme.(2)The fund manager shall determine the scheme’s average expenses such as commission, fiscal and other fees for buying or selling underlying securities during the dealing period and levy the buyers or sellers accordingly.(3)The levy raised under subregulation (2) shall be paid into the scheme for the benefit of the participants who neither purchased nor redeemed participatory interests during the dealing period.(4)A fund manager shall make a daily record of the participatory interests in the scheme held, acquired or disposed of by the fund manager, including the types or classes of such participatory interests and of the balance of any acquisitions and disposal and retain such record for a period of seven years from the date each record is made.(5)A fund manager shall make a daily record of how the anti-dilution is calculated and retain such record for a period of seven years from the date each record is made.